Alibaba jumps 7% to $142.20, fueled by AI cloud spending outlook

Alibaba shares surged 7% on Wednesday, May 6. The stock reached a daily high of $142.20 on heavy trading volume.

Research firm TrendForce sparked the rally by upgrading its 2026 capital expenditure forecast for global cloud providers. This revision follows the accelerating buildout of AI data centers in North America.

The updated outlook suggests higher future demand for Alibaba’s core cloud services. A broader rally in US-traded Asian American Depositary Receipts (ADRs) further increased demand for major Chinese technology stocks.